Strategic Management Quarterly

Evaluating Six Sigma Implementation Effectiveness through Statistical Process Control
Soma Sekar Balasubramanian, Erick C. Jones, Billy Gray, Harrison Armstrong, Roshani Samdurkar

Abstract
Six Sigma is a widely implemented methodology that utilizes common quality management techniques. It has been described as a way to improve company processes and overall company performance by reducing variation at the detailed level. The main reason for a company to utilize this methodology is to drive improvement in the company’s revenue. Generally, a company’s closing stock prices indicate the up-to-date accomplishments and financial status of the company. Lately, a company’s stock price has been identified and used as a valid indicator of Six Sigma’s success in a company. With this assumption, this study investigates companies that implemented Six Sigma by identifying successful and unsuccessful companies using the stock price information. In addition, the statistical process control method is employed to find if Six Sigma has improved consistency and reduced variation of stock prices of companies after its implementation. Key success factors for Six Sigma implementation has been identified from various literature sources and was related and compared to the success or failure of identified companies. The success factors also reveal the importance of leadership in the in the successful implantation of Six Sigma in companies.

Full Text: PDF     DOI: 10.15640/smq.v3n1a2